Top Themen Heute

UBS AG (NYSE:UBS)(SWX:UBSN) announced today that its Board of Directors
has authorized settlements with the US Department of Justice (DoJ) and
Commodity Futures Trading Commission (CFTC) in connection with their
investigations of benchmark interest rates. The proposed settlement with
the CFTC is subject to the Commission’s approval. UBS has reached a
settlement with the UK Financial Services Authority (FSA) concerning its
investigation. The Swiss Financial Market Supervisory Authority (FINMA)
will also issue an order concluding its formal proceedings with respect
to UBS.

UBS agrees to pay a total of approximately CHF 1.4 billion in fines and
disgorgement. UBS will pay GBP 160 million in fines to the FSA and CHF
59 million as disgorgement of estimated profits to FINMA. The Board has
authorized a payment of fines totaling USD 1.2 billion to the DoJ and
CFTC, and expects those authorities to make further announcements later
today. These monies would be paid according to specified payment
schedules.

Certain employees at the bank colluded with employees at other banks
and cash brokers to influence certain benchmark rates to benefit their
trading positions; and

Certain personnel gave inappropriate directions to UBS submitters that
were in part motivated by a desire to avoid unfair and negative market
and media perceptions during the financial crisis.

The conduct encompassed by the settlements includes Yen LIBOR, GBP
LIBOR, CHF LIBOR, Euro LIBOR, USD LIBOR, Euribor and Euroyen TIBOR,
although the nature and extent of the conduct in question varied
significantly from one currency to another.

The Board of UBS Securities Japan Co. Ltd., (UBSSJ) has authorized UBSSJ
to enter a plea to one count of wire fraud relating to the manipulation
of certain benchmark interest rates, including Yen LIBOR. The Board of
UBS AG has authorized the firm to enter into a Non-Prosecution Agreement
(NPA) with DoJ relating to UBS AG and all of its subsidiaries and
affiliates, except for UBSSJ.

Today’s resolutions stem from industry-wide investigations into the
setting of certain benchmark rates across a range of currencies. These
investigations have focused on whether there were improper attempts by
banks, either acting on their own or with others, to manipulate LIBOR
and other benchmark rates at certain times.

UBS has fully cooperated with the authorities in their investigations
and significantly enhanced its control framework for its submissions
process for LIBOR and other benchmark interest rates. The investigations
by other governmental authorities and private litigation referred to in
our third quarter 2012 report remain ongoing notwithstanding today’s
announcements.

UBS CEO Sergio Ermotti said: "During the course of these investigations,
we discovered behavior of certain employees that is unacceptable. Their
misconduct does not reflect the values of UBS nor the high ethical
standards to which we hold every employee. We have cooperated fully with
the authorities and taken decisive and appropriate actions to correct
the issues and to strengthen our control processes and procedures. We
deeply regret this inappropriate and unethical behavior. No amount of
profit is more important than the reputation of this firm, and we are
committed to doing business with integrity.”

UBS Chairman Axel Weber said: "The Board and I have zero tolerance for
inappropriate and unethical behavior of any of our staff. We appreciate
that the authorities have recognized UBS for the thoroughness of our
investigation and our exceptional cooperation. We are pleased that the
authorities gave us credit for the important and positive changes we
have already made. Our credibility with clients, investors and employees
is critical and therefore we have to continue to strengthen the firm's
operations, culture and awareness of risk."

Despite the expected payments announced today, UBS remains one of the
best capitalized banks in the world.

Based on business activity through the date of this announcement, UBS
believes its fourth quarter net profit attributable to shareholders will
show a loss in the approximate range of CHF 2.0 to 2.5 billion,
primarily as a result of: total provisions for litigation and
regulatory matters, (including the LIBOR settlements, claims related to
sales of residential mortgage backed-securities (RMBS) and other
matters), of approximately CHF 2.1 billion; restructuring charges of
approximately CHF 0.5 billion; and an own credit loss on financial
liabilities designated at fair value of approximately CHF 0.4
billion. On an adjusted basis, we expect to report a pre-tax profit in
the approximate range of CHF 2.5 to 3.0 billion for the year3.
Because the quarter has not yet ended, the above estimates are subject
to variability due to market movements (including those relating to own
credit) and other factors, and in the case of after-tax estimates are
subject to tax computations.

We are encouraged by the progress we have seen in the quarter to date on
both RWA reduction and balance sheet deleveraging. Net new money is
expected to be positive in the quarter as we have seen good flows in our
Wealth Management and Wealth Management Americas businesses, while we
have seen net outflows in Global Asset Management. Our Basel III
phase-in common equity tier 1 ratio is expected to improve to around 14%
by quarter-end and our fully applied Basel III common equity tier 1
ratio, inclusive of the effects from early adopting IAS 19R in the
fourth quarter, is expected to be roughly in line with the third
quarter's level of 9.3%.

For more information, see: http://www.ubs.com/libor-settlement.

Cautionary Statement Regarding Forward-Looking Statements

This release contains statements that constitute "forward-looking
statements". While these statements represent UBS's expectation
concerning the development of its business and its fourth quarter 2012
results, a number of factors, including market developments, quarter-end
adjustments and accounting determinations, could cause actual results to
differ materially from UBS's expectations. In addition, these results
could depend on other factors that we have previously indicated could
affect our business and financial performance which are contained in our
past and future filings and reports, including those filed with the SEC.
More detailed information about those factors is set forth in documents
furnished by UBS and filings made by UBS with the SEC, including UBS's
Annual Report on Form 20-F for the year ended 31 December 2011. UBS is
not under any obligation to (and expressly disclaims any obligation to)
update or alter its forward-looking statements, whether as a result of
new information, future events or otherwise

1 Based on currency rates as of 6pm Zürich time on 18
December 2012.

2 The calculation of our pro-forma Basel III RWA combines
existing Basel 2.5 RWA, a revised treatment for low-rated securitization
exposures which are no longer deducted from capital but are
risk-weighted at 1250%, and new model-based capital charges. Some of
these new models still require regulatory approval and therefore our
pro-forma calculations include estimates (discussed with our primary
regulator) of the effect of these new capital charges which will be
refined as models and the associated systems are enhanced.

3 Excluding the following items: an own credit loss on
financial liabilities designated at fair value of approximately CHF 2.2
billion; a net restructuring charge of approximately CHF 0.6 billion;
impairment losses of approximately CHF 3.1 billion on goodwill and other
non-financial assets in the Investment Bank; a credit to personnel
expenses related to changes to our Swiss pension plan of approximately
CHF 0.5 billion; a credit to personnel expenses related to changes to a
US retiree medical and life insurance benefit plan of CHF 0.1 billion; a
credit to personnel expenses related to the early adoption of IAS 19
(revised) Employee Benefits of approximately CHF 0.3 billion.